1441/1442 University of Jeddah College of Business International Finance BCFE324 Chapter 3/ Balance of Payments Exercise 1 Australia's Current Account Use the following data from the International Monetary Fund to answer questions 3.1 through 3.4. 3.1 What is Australia's balance on goods? 3.2 What is Australia's balance on services? 3.3 What is Australia's balance on goods and services? 3.4 What is Australia's current account balance? ? Assumptions (millions of US dollars) 2000 2001 Goods: exports Goods: imports Balance on goods 64 052 -68 865 4813 63 676 -61 890 1 786 Services: credit Services: debit Balance on services 18 677 -18 388 289 16 689 -16 948 -259 Income: credit Income: debit Balance on income 8984 -19 516 -10 532 8 063 -18 332 -10 269 2 622 Current transfers: credit Current transfers: debit Balance on current transfers -2 669 -47 2 242 -2 221 21 Questions 2000 2001 3.1 What is Australia's balance on goods? (goods exports - goods imports) 3.2 What is Australia's balance on services? (services credit - services debit) 3.3 What is Australia's balance on goods and services? (balance on goods + balance on services) 3.4 What is Australia's current account balance? ? (the sum of the four balances listed above, goods, services, income, and current transfers) Exercise 2 Russia's Balance of Payments 3.15 Is Russia experiencing a net capital inflow? 3.16 What is Russia's Total for Groups A and B? 3.17 What is Russia's Total for Groups A through C? 3.18 What is Russia's Total for Groups A through D? 1